As of July 2, 2025, fuel prices in India have remained largely steady across major cities. While there have been no significant changes to report today, consumers are always keen to know the latest petrol and diesel rates in their area.

Current Fuel Prices in Major Cities

Here's a quick look at the current petrol and diesel prices in some of India's major metropolitan areas:

• Delhi: Petrol is retailing at ₹94.72 per litre and diesel at ₹87.67 per litre.
• Mumbai: Petrol costs ₹104.21 per litre and diesel is priced at ₹90.03 per litre.
• Chennai: Petrol is selling for ₹100.80 per litre, while diesel costs ₹92.39 per litre.
• Kolkata: Petrol is priced at ₹103.94 per litre and diesel at ₹92.02 per litre.
• Hyderabad: Petrol is retailing at ₹107.41 per litre.
• Kerala: Petrol is retailing at ₹106.34 per litre.

These prices are updated daily at 6 AM, a practice known as dynamic fuel pricing, which was introduced in June 2017 to improve transparency and curb speculation.

Factors Influencing Fuel Prices in India

Several factors influence the price of petrol and diesel in India:

• Global Crude Oil Prices: Fluctuations in international crude oil prices have a direct impact on domestic fuel prices.
• Rupee-Dollar Exchange Rate: The exchange rate between the Indian rupee and the US dollar plays a crucial role, as crude oil is purchased in US dollars.
• Geopolitical Risks: Events like wars or tensions in oil-producing regions can disrupt supply and affect prices. For example, recent tensions in the Middle East between Israel and Iran briefly pushed Brent crude oil prices past $80 a barrel.
• Supply and Demand: Actual and expected demand for fuel, along with global crude market trade flows, also influence pricing.
• Government Taxes and Levies: Central and state government taxes, including excise duty and VAT, constitute a significant portion of the retail price.
• Other Costs: Factors such as shipping costs, refinery margins, and dealer commissions are also factored in.

Global Market Trends

Global oil prices have shown some volatility recently. After a period of decline, prices steadied amid tensions in the Middle East and focus on US inventories. However, concerns remain about a potential glut later in the year, especially with OPEC+ considering further increases in production quotas.

Regional Price Variations

It's worth noting that fuel prices vary across different states and cities due to factors such as local taxes and transportation costs. As of today, the highest diesel prices are in Andhra Pradesh (₹97.47 per liter) and Telangana (₹96.26 per liter).

Impact of Geopolitical Events

Geopolitical events can significantly impact fuel prices. Escalations between Israel and Iran, for instance, can lead to supply concerns and price increases. Similarly, US airstrikes on Iranian nuclear facilities have the potential to disrupt oil markets.

Fuel Price Adjustments in South Africa

In related news, South African motorists are facing a fuel price increase in July. Petrol prices are expected to rise by 50-53 cents per litre, while diesel could increase by 82-84 cents per litre. These adjustments are driven by factors such as Middle East conflict, rand turbulence, and new government levies.